Highlights: Jaitley delivers fiscally prudent Budget 2017

Income tax rate cut to 5% for individuals having income between Rs 2.5 lakh-Rs 5 lakh

Here are the highlights of Jaitley's budget for the 2017/18 fiscal year that begins on April 1.

FISCAL DEFICIT

* The 2017/18 budget seeks to pursue prudent fiscal management to preserve financial stability.

*Fiscal deficit at 3.4% 
 

*Revenue deficit stands reduced to 2.1% in Fy18

GROWTH

* Jaitley says India seen as an engine of global growth

DEMONETISATION

* Demonetisation "a bold and decisive measure", will make GDP bigger and lead to higher tax revenues - finance minister

* Hit to economy from government decision to outlaw high-denomination notes will be "transient", effects of demonetisation not expected to spill over to next year

* Pace of remonetisation has picked up and will soon reach comfortable levels

* Surplus money in the banking system will lower borrowing costs, increase credit flow

INFLATION

*Consumer price index inflation is expected to remain within the central bank's mandated range of 2 to 6%

SPENDING

* India to spend more in rural areas, infrastructure and poverty alleviation

* The government will continue process of economic reforms for the benefit of poor

* Allocation under MNREGA increased to Rs 48,000 cr from Rs 38,500 cr; highest ever allocation

*Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of 'Per Drop More Crop'.Initial corpus will be Rs 5,000 crore

*Mission Antyodaya to bring 1 crore households out of poverty and to make 50,000 Gram Panchayats poverty-free: FM Jaitley

*Propose to double the lending target of Pradhan Matri Mudra Yojana and set it up at Rs 2.44 lakh crore for 2017-18: FM Arun Jaitley

AGRICULTURE

* With a better monsoon agriculture is expected to grow at 4.1% in 2016/17

* Agricultural credit target fixed at 10 trillion rupees for 2017/18

*Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 1,87,223 cr, which is 24% higher than last year

*100% village electrification will be achieved by May 1,2018

*To complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses

*Issuance of soil health cards have gathered momentum, will setup a mini lab in krishi vigyan kendras

*Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges: FM Jaitley

Jobs

*3.5 Crore youth will be trained under Sankalp program launched by the government

Railways

*Unmanned railway level crossings to be done away with by 2020

*Railway related state-run companies like IRCON and IRCTC to be listed on stock exchanges

*A new metro rail policy will be announced, this will open up new jobs for our youth

*3,500 km rail line to be commissioned in 2017-18

*By 2019 all coaches of Indian Railways will be fitted with Bio-Toilets

Tax

*34% increase in disclosure of personal income tax

* Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh

*The net tax revenue grew by 17% in 2015-16

*For MSME sector: Income tax reduced to 25% with turnover upto Rs 50 crore

*Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana

*3-yr period for LTCG tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001

*Propose to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%

*Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore

Political Funding

*Maximum cash donation any party can receive will be Rs 2000 from one source: FM Jaitley

 

FINANCE MINISTER COMMENTS

* "India stands out as a bright spot in the world economic landscape."

* "My approach in preparing the budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence."

* "Signs of retreat from globalization have potential to affect exports from many emerging economies, including India."